Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
17 Mar 2023
Case Brief
The Reserve Bank of India imposed a monetary penalty on Housing Development Finance Corporation Limited, Mumbai by order dated March 13, 2023. RBI said the company had breached certain provisions of the Housing Finance Companies (NHB) Directions, 2010, read with the RBI press release on transfer of regulation of HFCs to RBI. The inspection revealed that the company failed to transfer matured deposits of certain depositors to designated bank accounts during 2019-20. After considering the company's reply and hearing submissions, RBI concluded that the non-compliance was substantiated and imposed a penalty of ₹5.00 lakh under the National Housing Bank Act, 1987.
Why RBI Acted
RBI imposed a monetary penalty on Housing Development Finance Corporation Limited, Mumbai under section 52A(1)(b) read with section 49(3)(aa) of the National Housing Bank Act, 1987. The penalty was for non-compliance with certain provisions of the Housing Finance Companies (NHB) Directions, 2010, read with RBI's press release dated August 13, 2019 on transfer of regulation of HFCs to RBI. The inspection found that the company failed to transfer matured deposits of certain depositors to designated bank accounts during 2019-20.
Operating Impact
The company must absorb the monetary penalty; the order does not impose an operational restriction or suspension. The finding is limited to regulatory non-compliance and does not invalidate customer transactions, but it reflects supervisory censure and may affect compliance expectations going forward.
Regulatory Basis
- clause (b) of sub-section (1) of section 52A
- clause (aa) of sub-section (3) of section 49 of the National Housing Bank Act, 1987
Action Facts
- Primary Impact
- Fine: Rs 5.00 L
- Order Date
- 13 Mar 2023
- Effective From
- 13 Mar 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC